Target Credit Card Outstandings Jump 24%

Target reported that its pre-tax credit card profits for the quarter ending November 3rd increased 17% over the year-ago quarter. Credit card outstandings for the quarter increased 24% year-on-year, topping $7.65 billion. Target says the the surge in outstandings was partially driven by the conversion of proprietary “Target Cards” to higher-limit “Target VISA” cards for a group of higher credit-quality “Target Card” cardholders. Target’s third calendar quarter pre-tax credit card profits were $157 million, compared to $163 million in the prior quarter and $134 million one-year ago. Target reported that its total credit card receivables, which include its VISA and “Guest” cards, were $7.652 billion as of November 3rd, compared to $6.906 billion for 2Q/07 and $6.148 billion one-year ago. Delinquency (60 days+) for 3Q/07 increased to 3.8%, compared to 3.5% in the previous quarter and 3.9% one-year ago. Charge-offs, as a percentage of period-end receivables, declined to 7.0% for 3Q/07, compared to 7.4% in the prior quarter and 8.4% one-year ago. Target’s credit card unit had net revenues of $383 million in 3Q/07, a 20% increase over 3Q/06. During the third quarter Target announced it began reviewing potential ownership alternatives for its credit card business. The Company says the review should be completed by year’s end. Target says it is continuing to evaluate whether the benefits of a potential transaction outweigh its expected dilutive impact on earnings per share. For complete details on Target’s latest performance, visit CardData ([www.carddata.com][1]).

TARGET CARD LOAN HISTORICAL
3Q/06: $6.148 billion
4Q/06: $6.711 billion
1Q/07: $6.510 billion
2Q/07: $6.906 billion
3Q/07: $7.652 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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GLOBALPLATFORM AMENDMENT

GlobalPlatform has released its “Confidential Card Content Management
Amendment” for secure application management. This solution has been
designed for application providers of mobile networks to establish
neutral infrastructure. This infrastructure will allow application
providers to manage applets Over-The-Air (OTA) on an end-user’s SIM,
namely for mobile telecom implementations with transit, entertainment or
financial applications such as e-tickets, video and payments. There are
currently 195 million GlobalPlatform smart cards in circulation around
the world.

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Cyber Monday Likely to Occur on Dec 10th

When does “Cyber Monday” happen this year? In the past it has been designated as the Monday following Thanksgiving. However, MasterCard says transaction data for historical holiday online shopping data show that “Cyber Monday” fell on December 11th last year and December 5th in 2005. With Thanksgiving falling early this year on November 22nd, this year’s “Cyber Monday” will likely be nearly three weeks later on December 10th. MasterCard noted that on average, consumers who plan to shop on the Web intend to make 40% of their purchases online, spending $253. Meanwhile, Retail Decisions predicts that online purchasing activity will peak for major retailers on December 10th, between 1:00PM and 2:00PM EST. KY-based Lexmark released a survey that shows seven out of 10 consumers will do at least some of their shopping online and even more will research products online before heading to the store. Boston-based SmartBargains predicts the Monday following Thanksgiving will top retail sales growth for the third straight year in a row as the busiest single day in retail e-commerce history.

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KASHFLOW

KashFlow has unveiled its accounting software allowing for SMEs to
collect money through credit/debit card payment from debtors over the
phone. With SecureHosting Internet payment service provider, the software
solution handles payment processing from the payer’s credit or debit
card to
the collecting company’s accounting department, from start to finish. The
accounting solution is self-explanatory for new users and is manageable sans
software training or an accounting background. KashFlow has been awarded
the 2007 Sift Media award, determined by customer feedback, and the 2007
Software Satisfaction Awards for “Best Web-Hosted Accounts”.

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BofA Names a New Checking/Debit Executive

Bank of America has named David J.Rudis, previously a President at LaSalle Bank, as Checking & Debit Product executive. Rudis will have national, end- to-end responsibility for checking and debit product strategy, management and integration. This position includes accountability for developing and monitoring products and services to continually meet customers’ changing needs. As market president, Rudis will provide business, civic and philanthropic leadership for Bank of America in Chicago and throughout Illinois. He will work to strengthen communication and integration among the company’s local business lines, continuously improve customer experience, grow revenue in the state and enhance Bank of America’s presence in the community.

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TICKETMASTER GIFT CARD

Ticketmaster has introduced a Gift Card offering, available in
denominations
from $25 to $250, for redemption with ticket purchases throughout the
United States and Canada. With the Gift Card, consumers can make ticket
purchases online, over the phone, at retail outlets and at venue box offices
and have no expiry dates. Cross-border purchases will be adjusted for
appropriately to account for the exchange rate. Ticketmaster operates in 20
different markets around the world for its 9,000 clients through nearly
6,500
retail outlets and 20 call centers. The company sold 128 million tickets
in 2006
for over $7 billion.

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AEON CREDIT SERVICES

AEON Credit Services is projecting a profit of RM30.5 million and
a revenue of RM157.5 million for the 2007 fiscal year. Since 2001 alone,
the company has realized a 67% compounded growth in revenue while
2006 net profit was RM19.7 million. When listed on the main board in
December, AEON will have a capital of RM60 million, will be offering
22 million shares for RM2.50 each and expects to raise RM55 million.
With these funds, the company plans on investing in assets and paying
down bank loans.

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GPN Inks a Hypercom SmartPayments License

Hypercom has signed a worldwide licensing agreement with Global Payments. The deal includes a license for Hypercom’s “SmartPayments” software products as key technology components of its host electronic transaction processing platform. The “SmartPayments Solution” suite is an electronic payment processing solution for PC-based cash registers and consists of “SmartPayments Client” and “SmartPayments Server.” The “SPC” runs on PCs and serves as a conduit between PIN-Pads and multi-lane terminals and the “SPS.” The license will facilitate Global Payments’ ability to expand quickly in several key markets by providing an infrastructure and total solution that supports retail multi-lane, mobile commerce, IP terminals, an e-commerce virtual terminal solution for card not present, and card present transactions including debit.

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TNB Card Processing Adds Two More Clients

TNB Card Services has added Houston-based Energy Capital CU Generations CU of Olympia, Washington to its processing business. The 15,000 member Energy Capital CU serves employees and family members of Exxon Mobil Corporation with $116 in assets. Generation services. 4,000 members and holds assets of $24 million. TNB Card Services provides electronic payments processing and is an agent issuing solution for credit unions nationwide.

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AirDefense Details Retailer Wireless Risks

GA-based AirDefense has released results from its “2007 Retail Shopping Wireless Security Survey” reveals that of the more than 2,500 wireless devices such as laptops, hand-helds, and barcode scanners in use by retailers, 85% of the devices could have been compromised or risk stolen data. Consequences of the wireless security vulnerabilities are difficult to quantify. However, unauthorized individuals with a desire to steal consumer information or retailer data are likely to look for the weakest link in the network, such as misconfigured access points. Some of the networks that were discovered were fresh out of the box, using default configurations and SSID (Service Set Identification), such as retail wireless, POS WIFI, or store#1234. This sends out a signal to someone with a desire to commit fraud that nothing has been changed on these devices and the entire wireless network. Data leakage occurs when companies add wireless functionality onto an existing wired network. Point-of-sale information on products and possibly consumer credit card information can leak onto the wireless airwaves and be stolen. The most common data security lapses involved mis-configured access points that open backdoors to data. On several occasions, larger retailers had configured access points to work with WPA but had not switched off WEP, the weakest wireless security protocol. In addition, many retailers use their store name in the SSID, the name assigned by the equipment vendor to the wireless network during installation giving away a retailer’s identity. SSID’s can easily be reconfigured but often times are not.

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55 CUs Offer Members Group ATIRAgift VISA

The Members Group has announced MI-based CASE CU, NM-based First Financial CU, CA-based First Future CU, Kansas State University FCU, IA-based Lennox Employees CU and Members 1st Community CU and CO-based Public Service Employees CU will be offering VISA-branded “ATIRAgift cards” to their memberships this holiday season. TMG launched the ATIRAgift card product in 2005 to meet the growing demand of the prepaid market for credit unions. It is a part of the larger “ATIRA” prepaid product that includes reloadable solutions such as the “ATIRApay” card. Currently, 55 credit unions representing 362 branches offer ATIRAgift cards.

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